I made 50,000 this year and after deductions really only made 24,000. I’m getting slammed with taxes… is there anything I can file or do that I’ve not thought of?
Your doing it wrong. Get an accountant
Self-employment taxes, aka ‘be your own boss’ fee
I hate it here sometimes grandpa. Damn they really want corporations to rule the country
As long as you have spent the other $25k then your not going to owe much if anything. If you have to pay tax on $50k, that won’t be much at all. Unless 2k or so is to much for you.
Spend the money on upgrades, less taxable income… then it’s almost like you paid 33-50% less. New computers, desk, chair, scanners, printers, fax machine, fridge, thermometer for fridge, trays for fridge, light bulbs, etc etc
You’re going to need to break out the math on this one.
What country are you in?
If you only made 50k gross you should be able to deduct to have zero liability. I make 200k+ and with all deductions my net is less than 30k. I paid $1200 in taxes for entire year
You only paid 1200 in taxes on 30k? How without going to jail
I second this… I was about $750k and by the time all deductions and depreciation was about $40k in taxes… still not chump change but percentage wise not bad at all.
You have to maximize your deductions that is literally the only legal tax strategy you can use and it is very very highly effective
My net is 24k after deductions from the revenue of 50k
This seems wrong. Check your withholding. What state are you in? This can’t be just federal.
Same happened to me last year. My income was 54k, after deductions it lowered to around 31k… had to pay $7500 between federal and state (I live in MA). People say to find a good CPA but the one I saw was of no help and didn’t seem interested in helping me strategize to lower my tax burden.
If you go to a CPA after the end of the tax year, there’s nothing they can do to strategize your taxes retroactively.
Sounds like you need an accountant.
They need to be a magic accountant it seems
Transfer your earnings to a friend abroad that is based in a country with no taxes, fly out , ask him to give your money back in cash and spend your money there. Keep your official earnings lower on paper.
If you want to go to federal prison go ahead and do this… I am seriously hoping this was a joke but forgot the /s at the end.
If you made $24,000 in profit as a self-employed person, here’s how your federal taxes should look for 2023 (I’m assuming you’re single and not a head of household):
Net Profit: $24,000 Self-Employment Tax: $3,391 Standard Deduction: -$13,850 SE Deduction: -$1,695 AGI: $8,455 Income tax: $845.50 Effective income tax rate: 3.5% Effective SE tax rate: 14.2% Total effective tax rate: 17.7%(I’m not a tax preparer - please don’t use these numbers to file your taxes.)
Where you’re feeling the pinch is your Social Security and Medicare taxes, not your income tax. Given how small your profits were, there’s no real way to offset this except by making your business even less profitable.
Pay yourself in dividends